Sunday, August 08, 2010

True Capitalist Society- i

There are only two economic models. Capitalism and Feudalism. Socialism is a correction to Capitalism. 

 In human history only Feudal economy has been practiced in its purity. Capitalism has always been bugged with feudal elements -which I'm going to discuss later. Socialism came up in regions where feudal power was in decline but the economy has not moved to true Capitalist self. Ironically, Socialism enforced state feudalism while rooting out family feudalism.

A true capitalism differs from feudalism in three aspects:
1. Inheritance of wealth
   Inheritance is everything in a feudal economy; it doesn't exist in a capitalist economy
2. Open competition
   Monopolization is the feudal mindset; whereas open competition is for true capitalism
3. Exploitation of earth resources and people
   Both are part of feudal economy; True capitalism only exploits earth resources

Generally, capitalism has shown feudal tendencies of (1).

The salient features of a true capitalist society are;
- Wealth (in the form of land, articles, businesses) can not be inherited. If a person dies his wealth goes to the state
- Every individual is free to make money by the exploitation of the resources. But his wealth will be distributed in the form of taxes and after his death - elaborated next;
      * In businesses, his share in the company goes to public and can be bought by anyone who is not part of his/her family
      * Land goes to the state which it can auction it and it can be brought by anyone who is not part of his/her family
      * Material possessions(house, jewellery) goes to the state which it can auction it and can be brought by anyone who is not part of his/her family
- Every male pays taxes. This part is explained in the subsequent part

But to create a true capitalist society the state needs to support children to grow into productive persons who can generate wealth.

However, since Homo Sapiens are sexual beings they are not really individuals and need at least one partner. Considering the case of heterosexuals only, the state needs to ensure that male and female are independent of each other. It is required to remove the cultural expectation of male-female bonding and create an environment for materialist bonding. In a true capitalist society, a productive -explained later- female is financially fully secure and a productive male is completely unsure of his future.  To achieve this it's required to:

- Provide education completely free. Thus create productive male and female.
- Social security to each and every female in the form of a house and unemployment benefit to live a life of middle-middle class standard
- Females are not to be taxed but males to be taxed 40-50% of their income. Male doesn't have any other materialist responsibility apart from his own self
- State has to take care of people in their old age contingent on their working years and tax payment history
- Voluntary childlessness should be taxed in the case of both males and females. Males may need to give additional 10% and females start paying tax rate of 50%


Maju said...

At leas there is one more economic model: primitive communism. Classics also consider the "Asian mode of production", planned by the state in the context of religious bureaucracy.

But primitive communism is a key model, as our species lived in it for all the pre-Agrarian period and probably also at the early Agrarian period as well. Feudalism, Capitalism and the AMPare degenerations of this "natural economy" in the context of the need to organize forces beyond the tribal scope and the appropriation of privileges by some elites.

In communism the boss obeys and organizes sharing up to the point of being the one giving more (he gets personal prestige but no wealth), in the other systems the boss dictates and makes his share fatter and fatter.

They all are about how to organize production and distribute its output. Stalinism is the AMP in Capitalist/Industrial context.

Maju said...


I'm not sure your comparison of feudalism and feudalism is totally ok. In Capitalism profit by means of trade is the drive, in feudalism profit is less important (stability is instead) and anyhow can normally only be gained in conquest or by gift from your lord. It is also very much restricted to certain castes: nobility in Europe.

However no ideal system exists and trader/banker proto-capitalism arose once and again inside feudalism.

"In a true capitalist society, a productive -explained later- female is financially fully secure and a productive male is completely unsure of his future".

That's not workable. Women are a key workforce because men can always bum around much more easily, while women are easily tied up by babies, forcing them to get a stable income somehow. It's children who force you to work more than anything else, and men can optionally disregard that part, specially as traditional family disintegrates under the egoistic mentality of pure Capitalism.

I can agree with what you suggest to some extent (need to provide special care for women as mothers) but for that a socialist system is needed. Nothing of that will ever be feasible under capitalism.

"Voluntary childlessness should be taxed"...

Why? Is not there a problem with overpopulation and lack of jobs and resources? I rather prefer a modified Chinese system that would promote 1-3 children (replacement figures) and discourage having too many children.

manju said...

men can always bum around much more easily
If you suggest some men would bum around even when there are jobs, I suppose that can only be because of decadent feudal thinking.

Old age social security should be contingent on person's working years and tax payment.

Is not there a problem with overpopulation and lack of jobs and resources?
That is not the point. In a true capitalist society, people are free of divine duty of producing more and more children. The main reason being woman is independent of man. So, there is no question of overpopulation in such societies. I would think in such societies women would go maximum two children (within replacement figure...most of South India already reached this level and may be comparable to developed countries).

in feudalism profit is less important (stability is instead)
That is the artifact of monopoly. I suppose sometimes you are not driven to create more wealth if you are not really competing with somebody.

Maju said...

Unemployment is no "artifact of monopoly", true capitalism needs of excess workforce in order to reduce costs and the law of offer and demand takes care of that "naturally".

Capitalism, even in an ideal pure market situation (lots of small companies, no oligopoly of any sort) requires of creating and keeping a sector of losers in order to secure the rest of the workers from being "too demanding". If all workers are employed and can find alternative jobs easily, they can also demand better work conditions and better pay, even without unions, raising the costs of production. The "natural" product is therefore unemployment so people have to choose not between many job offers but between few job offers and the dreaded limbo of unemployment, impoverishment and marginalization.

There's no full employment in Capitalism. It's impossible.